Mutual funds cautiously raise their holdings
The mutual funds invested Rs 100 crore to Rs 865 crore in 19 midcap stocks, while 29 stocks attracted Rs 10-99 crore in March.
Stock market is all about making handsome gains in a short span of time with small investments, that is what most believe. And why not, the Sensex and Nifty have climbed 20 per cent and 22 per cent respectively in the last one year, from March 15, 2016 to March 14, 2017. If you are one of those dreaming of growing money through investments in equity markets, then here are a few dos and don'ts you must pay heed to.
“Buy in dips and sell in rallies”
If you know the market-related investment strategies than “buy in dips and sell in rallies” rule is among the most talked rules. The rule gives good profit in long term if other factors do not hurt the market sentiments. The rule is simple to remember and easy to implement. But if it is true then how do most people lose their money in the market? The answer, according to some experts, is letting emotions guide your decisions and not making the best strategy.
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What experts say
On March 14, Nifty settled at a life-time high of 9,087, surpassing its previous record of 8,996 on March 3, 2015. Therefore, some market analysts are waiting for a correction now. Meanwhile, according to reports, some Mutual Funds (MFs) have stopped new investment in stock markets because the latest bull run is barring them from parking investors money in the markets for their protection.
Notice the indication
It is true that markets do not run in one direction and if it is true then the markets may correct very soon. If we see the previous one year of market run, the Sensex touched 29,045 level on September 8, 2016 and then it fell to 25,765 in around two months' time (November 11, 2016), which is almost 12 per cent dip.
If you are really interested in growing your heard-earned money through equity markets then wait for the right time.
Don’t buy the high or sell the low.
Don’t buy when you see everyone is buying.
Sometimes it is better to focus on specific stocks and forget the benchmark indices.
Identifying the healthy companies and waiting for the right time is perhaps a good investment strategy.
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